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There are several different agencies and
programs available for government
foreclosure help. It can be tricky to try to
navigate through all of the different
programs available to find out which one or
ones you qualify for. There are different
eligibility requirements for each program so
it is important to understand your mortgage
before apply for a program.
HUD.gov
The best place to start is the U.S. Department of Housing
and Urban Development website, HUD.gov. Click on the
Avoiding Foreclosure link and it will take you to a page
that briefly outlines the different options available to
you.
You can also talk to a HUD-approved housing counselor to
help you understand your options. There are several within
major metropolitan areas or you can call HUD at 800-569-4287
to be connected to one within your area. Trying to navigate
the many options available to you on your own can be
confusing and time-consuming. A HUD counselor can help you
sort through the options.
Making Home Affordable Program
This is the government foreclosure help initiative that
President Obama put in place to try to help homeowners.
There are several different options with this program but
each one has qualifications that must be met.
Home Affordable Modification Program (HAMP)
This one helps you lower your current payments through a
modification to your existing loan. Qualifications for this
program include but are not limited to: current mortgage
payment is more than 31% of your gross income, mortgage was
before 2009, you have a current financial hardship, and the
home is your main residence.
Principal Reduction Alternative (PRA)
If you owe more on your home than what it is worth in
today’s real estate market, you may qualify for this
program. This one is designed to reduce your total loan
amount. The qualifications for this program are much the
same as the HAMP program. There are about 100 lenders that
have agreed to participate in this program.
Second Lien Modification Program (2MP)
This program is designed to lower your payments on a second
mortgage that you have on the home. The primary mortgage on
your home must have been modified through HAMP for you to
qualify for this program. There are also only a select group
of lenders participating in this program.
Home Affordable Refinance Program (HARP)
This one is also designed to help homeowners whose homes are
worth less than what they owe on them. If you have tried to
refinance your home the traditional way but have failed,
this is the government program you’ll want to try. Your loan
must be owned by Freddie Mac or Fannie Mae and you must have
made all of your payments on time over the past year
(nothing over 30 days late). This program is in the process
of being revised so that there are no limits on how much
underwater your home is. The current rules are that you
cannot owe more than 125% of the home’s current value. This
revision to the program is expected to take effect in
December 2011 or early 2012.
No matter which government foreclosure help program you
decide to try, working with your lender is a good place for
you to start. They will be able to tell you what type of
loan you have and if they are participating in any of the
government programs.
Sources:
HUD.gov: Avoiding Foreclosure
Nasdaq.com: Understanding the New HARP Refinance
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